Report of Indian Institute of Public Administration ... - Ministry of Power

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
In 2004-05, the energy available for transmission was 3,431 MU and that
delivered was and 3,137 MU. These figures represent the best performance in
terms of energy handled over the years. Investments of Rs 36.43 crore (2004-
05) and Rs 70.38 crore (2005-06) were, made in strengthening the transmission
system. These were substantially higher than those made in any of the past
years. An amount of Rs 171.55 crore has been utilised under APDRP.
However, there has not been any noticeable impact on reduction of AT&C
losses. For the financial commitments made in FRP, Government of Assam has
made the following payments/provision:
Year
Commitments Made in FRP
Amount
2003-04 Rs 141 crore (against defaulted bonds)
2004-05 Rs 529 crore
2005-06 Rs 372.62 crore (provision made)
AERC has issued four tariff orders up to 2005-06. Modest increases have been
allowed in tariffs. The Commission has been functioning independently
without any interference. The companies have filed petitions for 2006-07 but
the decision was held back because of the State Assembly Elections. MYT is
being considered. The Commission has notified 16 Regulations under the EA,
2003.
Most of the officers and staff in the Commission are on deputation from ASEB.
About 1.6 lakh BPL category consumers have been given subsidy. Crosssubsidy
still exists. AERC has come out with regulations allowing Open
Access in distribution system to be completed in a phased manner. ABT is yet
to be introduced.
8.4 SPECIAL FEATURES OF THE REFORM PROCESS
Assam was the first State, in which the Electricity Board was restructured after
the enactment of the EA, 2003 in June 2003. A lot of preparatory work had
been done by analysing the problem of the State’s power sector and
announcing a power policy on Reforms and Restructuring in January 2003. A
clear road map was laid out in the policy. Financial assistance of US$ 250
million from the ADB became a key factor in clearing up the books of ASEB
and starting the new companies. Consultants, appointed from the special
financial assistance of ADB, helped in designing the financial projections of
the new companies and preparing the opening balance sheets. M/S P.A.
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